STEINHOFF
Star earnings hammered to cushion its executives
Multimillion-rand provisions for executive remuneration schemes are behind an expected 52% knock to Steinhoff Africa Retail’s (Star’s) interim earnings to March 2018, due to be released on Tuesday. The hefty knock was announced in a trading update released on Sens after the close of trade on Friday, when the share had closed 1.65% higher at R17.90. A Star spokesman told Business Day on Sunday that the reason for the last-minute disclosure was "reasonable certainty of the results" was only confirmed following the audit committee’s meeting, which took place on Friday. Star, which was wholly owned by Steinhoff until listing in September 2017, comprises retail brands including Pep, Ackermans and Tekkie Town. Steinhoff now holds 71% of Star. The earnings knock stems from the board’s decision to compensate senior executives for the loss to the value of their remuneration packages caused by the collapse of the Steinhoff share price. Before the collapse The remuneration schemes were based o...
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